It can’t have failed to come to your notice that today is the day that Donald Trump becomes president of the USA. There’s been an awful lot of wailing and rending of garments. Fears of a Trumpocalypse and the end of Western civilisation. Prophesies not just of trade wars, but real wars too. But when it comes down to it, what we want to know is will his policies work and what will they mean for investors? Rupert Foster attempts to answer those questions in this week’s cover story, and picks ten stocks to buy if you want to play the “Trump bump”. Find out what they are with a subscription to the magazine now.
One good idea from Trump
There is at least one policy that Donald Trump is promising to introduce that is a good idea, says Andrew McNally: scrapping the tax deductability of interest expenses for private companies – which has fuelled a bubble in debt and had the effect of concentrating the ownership of equity. It’s not a particularly new idea, but now its “time has come”, says Andrew. The trouble is, promises of tax reform “are notoriously difficult to keep”. And “much of what Trump has promised will not be delivered”. But if this “apparently innocuous detail becomes real”, says Andrew, we’d see “more resilient corporations and wider distribution of their profits”.
Will Trump stay the course?
US presidencies usually last four years, unless things go horribly wrong. But there is a likelihood that Trump’s tenure may be much shorter than that, says Matthew Lynn. Trump comes to office “with more history than any previous president”, he says. And it’s hard to believe that history doesn’t contain enough stuff “to launch an impeachment action”. Even if his opponents don’t try to depose him, says Matthew, Trump is “so unpredictable” that he “may even flounce off in a tantrum” leaving vice president Mike Spence to take up the reins. Matthew looks at what that might mean for the economy and the markets.
How to build the perfect buy-and-hold portfolio
On his investment strategy page, Matthew Partridge looks at building the perfect buy-and-hold portfolio. This would consist of “companies that could grow consistently at a rapid rate over a long term”. That way, you wouldn’t need to worry about short term price fluctuations. But obviously, “finding such stocks is not easy” – if it were, everyone would be at it. To help you discover them, Matthew offers three questions to ask of any company before you buy it. Find out what they are with a subscription to the magazine now.
Reasons to be bullish on oil – and a play for the adventurous
Matthew Partridge is back later in the magazine in his inaugural trading column. This week he’s looking at trading oil. The oil price recovery “hasn’t been getting as much attention as it should”, he says. But that means it “may offer a trading opportunity”. It’s high-risk stuff, and managing that risk is key to successful trading.
David C Stevenson is also bullish on oil. On the funds page, he proposes playing the sector by buying in to the oil equipment services sector, and picks three funds that have returned between 45% and 52% over the last year. Again, it’s an adventurous punt. Find out exactly what both suggest in Find out what they are with a subscription to the magazine now.
Can you trust best-buy mortgage tables?
When looking for a mortgage, or any financial product, it obviously pays to shop around to get the best deal. Many of us, quite reasonably, turn to “best buy” tables. But, says Ruth Jackson, there are accusations that banks manipulate them by cutting interest rates to get their products to the top of the tables, then making all that money back in high fees. Ruth looks at how to work out if you really are getting the best deal.
Also on property, Emma Lunn has some advice for buy-to-let property investors. With tax changes due to hit the private rental sector form April, making it a less attractive investment, she looks in to whether forming a limited company is the right theing to do for most people.
Why you should avoid portfolio bonds like the plague
If you’ve been living abroad for a while but intend to return to the UK at some point, “there’s a good chance someone will already have tried to sell you an offshore portfolio bond as a vehicle for saving for your old age”, says David Prosser. If not, “expect to be approached sooner or later”. If you do get approached, just say no. These misleadingly titled bonds “rarely offer a good deal”. In fact, adds Cris Sholto Heaton, they are a “simply terrible investment”. His advice is clear: “don’t go near them”. Find out what they are with a subscription to the magazine now.
Meet the costs of long-term care for the elderly
Speaking of old age, we’re all living longer, but unfortunately many of us may require long-term healthcare. Planning for it may not be top of anyone’s agenda, but failing to do so could cost you dearly – financially and in term of the quality of care – and life – you get. Marina Gerner looks at how best to prepare for your sunset years.
Of course, on top of all that, we’ve our regular features too. News on the markets and the economy, share tips from professionals and rounded up from the rest of the financial press, and our usual pages on how to spend it. Chris Carter explores the unspoilt Caribbean paradise of Barbuda. We look at the “Black Douglas” – a new vintage motorcycle, plus a wine that Matthew Jukes heralds as a “whispering angel”, and eight of the best properties to buy with home offices and workshops. All that can be yours, delivered direct to your door, plus full access to the website, and our smartphone and tablet app. How can you refuse? Find out what they are with a subscription to the magazine now.